Wedoany.com Report-Nov. 5, Abu Dhabi National Oil Company (ADNOC) has signed a multi-year LNG offtake agreement with Shell International Trading Middle East Limited FZE, a wholly-owned subsidiary of UK-based Shell, for its low-carbon Ruwais LNG project in the United Arab Emirates.

Under the 15-year sales and purchase agreement (SPA), Shell will receive up to 1 million tons per annum (mtpa) of LNG. This marks ADNOC’s first long-term LNG deal with Shell and the eighth long-term offtake contract for Ruwais LNG since the project’s first SPA was announced in 2024. Shell also holds a 10% stake in the project through Shell Overseas Holdings.

The SPA formalizes a previous heads of agreement, accelerating ADNOC’s plans to commercialize the LNG project, with gas primarily sourced from Ruwais LNG, currently under construction in Al Ruwais Industrial City, Abu Dhabi.

Fatema Al Nuaimi, CEO of ADNOC Gas, said: “This agreement with Shell marks a significant milestone that reinforces ADNOC’s position as a reliable global supplier of lower-carbon LNG. Securing over 80% of Ruwais LNG’s capacity in just over a year from FID is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally. While the industry can take up to four or five years to market such volumes, Ruwais is advancing at record pace. In parallel, construction, contractor mobilization, and site works are all on track for commissioning by the end of 2028.”

With this contract, more than 8 mtpa of the project’s planned 9.6 mtpa capacity is now secured with long-term agreements covering customers across Asia and Europe, only 16 months after the final investment decision (FID) in July 2024.

Tom Summers, Executive Vice President of Shell LNG Marketing and Trading, highlighted: “Shell’s trusted partnership with ADNOC dates back more than 50 years and today we share a vision of strengthening global energy security through strategic collaboration. This agreement is a significant milestone in our partnership with ADNOC and supports Shell’s strategy of expanding our LNG portfolio.”

The Ruwais LNG plant is set to be the first LNG export facility in the Middle East and Africa powered by clean energy, making it one of the lowest-carbon intensity LNG projects globally. The project integrates artificial intelligence and advanced technologies to improve safety, operational efficiency, and emissions performance.

Featuring two 4.8 mtpa liquefaction trains, the facility will more than double ADNOC Gas’ existing LNG production capacity to approximately 15 mtpa, supporting ADNOC’s strategy to expand its LNG portfolio to meet rising global demand.

The agreement reinforces ADNOC’s position as a leading global LNG supplier while highlighting the rapid development pace and environmental focus of the Ruwais LNG project. Construction is ongoing, with commissioning expected by end of 2028.